Insights from fund management companies in Vietnam: Evidence from financial reports

This paper provides new evidence on fund industry in Vietnam, specifically the profitability and firm characteristics of a company which manages funds. Using hand-collected company information for fund management companies (FMCs), the study shows that FMCs generated a high growth in profitability and revenue from 2014 to 2020. The paper also contributes to the fund management literature by explaining cross-sectional variation in profitability. The research finds that size is the key determinant of FMCs’ profitability, where larger FMCs generate significantly higher profitability. In addition, Vietnamese FMCs have a very high liquidity ratio, a low proportion of fixed assets and a small debt ratio.